Bio-Based Lubricants Market - Global Outlook & Forecast 2022-2027

Bio-Based Lubricants Market - Global Outlook & Forecast 2022-2027

The global bio based lubricant market is expected to grow at a CAGR of 5.21% during 2022-2027.

Bio-based lubricants are natural organic chemicals formulated with organic materials such as vegetable oil (sunflower oil, rapeseed oil, castor oil, and palm oil), animal fats, natural esters, and special additives. These components are environment-friendly, thus release no harmful chemicals on the environment, and are capable of meeting stringent government standards, specifically related to carbon emission, while maintaining high performance. Bio-based lubricants also offer performance benefits such as prolonging the equipment life and reducing maintenance costs, friction, and energy consumption. Bio-based lubricants are highly preferred in sensitive environments such as forest, mining, marine, wind power, and construction equipment where there is a high chance of oil spill and oil mist which can potentially harm aquatic life and human health.

KEY INDUSTRY INSIGHTS

  • The increasing price of petrochemicals, the depletion of crude oil reserves, and the rising awareness among consumers towards protecting the environment from greenhouse gas emissions are stimulating the demand for the bio-based lubricants market.
  • The stringent regulatory standards of the EU Ecolabel, VGP, IMO, and other regulations (such as Blue Angel and Swedish Standard) to limit the CO2 and other harmful emissions are shaping the demand in the global bio-based lubricants market.
  • Under VGP regulation, the U.S. Environmental Protection Agency mandates the regulation regarding oil discharge during the usual operation of commercial vessels in the U.S. territorial waters and the Great Lakes.
  • The regulatory landscape is a significant hindrance for small and medium enterprises scaling up operations. But at the same time, it is driving the industry because these standards and regulations ensure the product's safety, quality, and low toxicity.
  • “The greatest impact in accelerating the growth of biodegradable lubricants has been the development of high-performance synthetic hydrocarbon base oils. This technology is both readily biodegradable and more oxidatively and hydrolytically stable than the ester technology that was used in the past”, says Dr. Larry Beaver, Vice President, Research & Development for RSC Bio Solutions.
MARKET TRENDS

Stringent Government Regulation Driving Demand for Bio-based Lubricants

The increasing concern for environmental protection, carbon footprint, and sustainable development has contributed to the strict regulations to use bio-based lubricants. The U.S. Environmental Protection Agency (EPA), EU Ecolabel, and IMO are the regulatory bodies that monitor and implement stringent regulations regarding the discharge of oil spills in the ocean by the marine industry or provide a certified label that ensures the customer that the product is environment friendly. Therefore, with the rising focus of the government to reduce carbon footprint worldwide, companies across the industries (such as mining, construction, marine, wind power, and automotive) need to ensure that the lubricant products they are using must comply with the regulations set by the regulatory body and meet the performance standard, thereby augmenting the demand of the bio-based lubricants market.

Accelerating Demand from Mining Industry

The increasing automotive production, infrastructure development, and power industry is driving the bio-based lubricants market growth worldwide. This growth is creating a demand for bio-based lubricant products as these lubricants are primarily used in mining equipment ranging from large wheel loaders, mining trucks, wheel tractor scrapers, large dozers, underground mining loaders and mining, rock drills, and mining shovels which are used across above and below ground. Lubricants play a vital role in the smooth functioning of this equipment, continuous operation, and protection from dust, water, and breakdown. In addition, bio-based lubricants also reduce the health risk for employees and are gentle on the environment using protecting the aquatic life in case of spilled lubricants.

MARKET RESTRAINTS

Availability at High Cost & Lack of Lubricating Properties

The major challenge faced in the bio-based lubricant market is its availability at a high cost, especially in the emerging economies of India, where people are price sensitive. The high cost of bio-based lubricants is attributed to their production process. It is produced using several chemical modification processes, including transesterification, epoxidation, and esterification reactions which increases the overall cost of the product.

Similarly, the lack of lubricating properties is also a hurdle to the growth of the global bio-based lubricants market. Bio-based lubricants fail to provide crucial physical properties such as thermal stability, oxidative stability, and viscosity range. Also, it does not perform well in cold processing facilities, giving an edge to petroleum-based lubricants over vegetable oil-based ones. These properties play a vital role in ensuring the smooth functioning of the vehicle while protecting the machine from friction and corrosion and ensuring the machine functions at high temperatures without any damage.

SEGMENT ANALYSIS

INSIGHTS BY TYPE

Biodegradable synthetic is expected to dominate the industry during the forecast period. Since the 1950s, synthetic esters have been used to produce lubricants. Presently, manufacturers prefer synthetic esters over vegetable oil to produce bio-based lubricants because it offers enhanced benefits compared to vegetable oil and is abundantly available in nature as compared to vegetable oil. Synthetic esters are primarily preferred for those applications that require frequent lubricant changes, such as hydraulic fluid, engine oil, and stern tube-thruster fluid. TotalEnergies, Fuchs, and Condat are some companies offering lubricants based on synthetic esters.

INSIGHTS BY APPLICATION

Hydraulic fluid is the largest segment amongst others in the bio-based lubricant market. The segment is expected to witness growth due to the rising demand for bio-based hydraulic fluid in agriculture & forest equipment and the mining industry.

INSIGHTS BY END-USER

The marine industry held the highest share in the bio-based lubricants market in 2021; however, the automotive industry is expected to lead the bio-based lubricants market during the forecast period. Over the years, the demand for bio-based lubricants in the marine industry has increased due to the rising regulation and to mitigate the issues caused by the oil spill. A regulatory landscape highly characterizes the marine industry. The Vessel Grant Permit and IMO 2020 are the major regulations that promote biodegradable lubricants in marine vessels to reduce carbon emissions while protecting the equipment.

Segmentation by Product Type
  • Plant-Based
  • Biodegradable Synthetic
Segmentation by Application
  • Hydraulic Fluid
  • Gear Oil
  • Chain Oil
  • Metalworking Fluid
  • Others
Segmentation by End-Users
  • Marine
  • Mining
  • Agriculture & Forestry
  • Automotive
  • Others
GEOGRAPHIC ANALYSIS

The rising economic development, increasing sustainability to reduce carbon footprint, and growing automotive, mining, and industrial sectors are boosting the global bio-based lubricants market. The government's stringent regulation towards eco-friendly and environment-friendly products is also driving the industry for bio-based lubricants products across all the regions. Europe accounted for the highest contribution to the global bio-based lubricants market, followed by North America.

The bio-based lubricant industry in North America has grown dramatically in recent years. The U.S. is a crucial country in the region with the world's largest economy in terms of GDP. Because of rigorous emission standards and robust transportation infrastructure, the United States is one of the primary centers for bio-based lubricant manufacture, attracting global players to set up their facilities in the U.S.

Asia-Pacific is projected to be the fastest-growing bio-based lubricants market during the forecast period. Indonesia, Malaysia, and China lead the region. These regions are witnessing a surge in demand from the automotive & transportation sectors, increasing mining activities, and the manufacturing & machinery sector driven by the increasing regulation to reduce carbon emissions. In APAC countries Indonesia and Malaysia are rich in palm oil, whereas India is the third largest producer of rapeseed oil and the world’s largest producer of castor oil. Thus, lubricant manufacturers are emphasizing increasing their production base in Asia due to the easy availability of raw materials and low labor costs. The consumption base is also highly driven by foreign investments, a booming manufacturing sector due to the friendly policy, a growing middle-class population, and increasing living standards across the APAC.

Segmentation by Geography
  • APAC
  • China
  • Malaysia
  • India
  • Indonesia
  • Japan
  • Rest of APAC
  • North America
  • US
  • Canada
  • Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
  • Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
  • Middle East & Africa
  • Saudi Arabia
  • UAE
  • Iran
  • Rest of MEA
COMPETITIVE LANDSCAPE

The competitive scenario in the global bio-based lubricants market is currently intensifying. The rapidly changing technological environment, the trend to reduce carbon footprint, and sustainability scenario can adversely affect vendors as customers expect continual innovations and upgrades. The market is moderately fragmented, with players providing bio-based lubricant products that are readily biodegradable, environmentally friendly, and highly functional.

The major companies operating in the global bio-based lubricants market are Castrol (UK), Fuchs (Germany), Cortec Corporation (US), Renewable Lubricants (US), and Metalube (UK), Repsol (Spain), and Kluber Lubrication (Germany), among others. These companies continually compete for the leading position in the industry, with steady competition from local vendors and international players.

Recent Developments
  • In 2019, Metalube launched biodegradable lubricants for lubricating and protecting umbilical cables and steel wire ropes operating in marine environments. The lubricant product is formulated from biodegradable resources and high-performance additives that are non-toxic to aquatic organisms.
  • In March 2020, Abu Dhabi National Oil Company (ADNOC) launched biodegradable lubricants for engine oil formulated with 100% plant oil in the UAE market.
  • In 2021, BioAccelergy entered into a joint agreement with Exxon Mobil to develop bio-based lubricants formulated from vegetable and seed oil. This joint agreement would benefit Exxon Mobil not only in terms of enhancing its sustainability aspect but would also be assisted in terms of technology.
Key Vendors
  • Castrol
  • FUCHS
  • Renewable lubricants
  • TotalEnergies
Other Prominent Vendors
  • Addinol
  • Cortec Corporation
  • Condat
  • DuBois Chemicals
  • Exxon Mobil Corporation
  • Environmental Lubricants Manufacturing
  • Haynes Lubricants
  • Kluber Lubrication
  • Lubriplate Lubricants Company
  • Metalube
  • Panolin AG
  • Repsol
  • Vickers Oil
KEY QUESTIONS ANSWERED

1. HOW BIG IS THE BIO-BASED LUBRICANTS MARKET?

2. WHAT IS THE GROWTH RATE OF THE BIO-BASED LUBRICANTS MARKET?

3. WHO ARE THE KEY VENDORS IN THE GLOBAL BIO-BASED LUBRICANTS MARKET?

4. WHAT ARE THE LATEST TRENDS IN THE GLOBAL BIO-BASED LUBRICANTS MARKET?

5. WHICH REGION HOLDS THE LARGEST GLOBAL BIO-BASED LUBRICANTS MARKET SHARE?


1 RESEARCH METHODOLOGY
2 RESEARCH OBJECTIVES
3 RESEARCH PROCESS
4 SCOPE & COVERAGE
4.1 MARKET DEFINITION
4.1.1 INCLUSIONS
4.1.2 EXCLUSIONS
4.1.3 MARKET ESTIMATION CAVEATS
4.2 BASE YEAR
4.3 SCOPE OF THE STUDY
4.3.1 MARKET SEGMENTATION BY GEOGRAPHY
5 REPORT ASSUMPTIONS & CAVEATS
5.1 KEY CAVEATS
5.2 CURRENCY CONVERSION
5.3 MARKET DERIVATION
6 PREMIUM INSIGHTS
6.1 GLOBAL BIO-BASED LUBRICANT MARKET 2021–2027
6.1.1 INDUSTRY TREND
6.2 SYNOPSIS
6.2.1 MARKET TRENDS
6.2.2 SEGMENT REVIEW
6.2.3 COMPETITIVE LANDSCAPE
7 MARKET AT A GLANCE
8 INTRODUCTION
8.1 OVERVIEW
8.1.1 KEY FACTS & FIGURES
8.1.2 LIFE CYCLE OF BIO-BASED LUBRICANTS
8.2 KEY INSIGHTS
8.3 COVID-19 IMPACT
8.3.1 MODERATELY AFFECTED SECTORS
8.3.2 HIGHLY IMPACTED
9 MARKET OPPORTUNITIES & TRENDS
9.1 INITIATIVES TO PRESERVE ENERGY AND NATURAL RESOURCES
9.2 ACCELERATING DEMAND FOR LUBRICANTS FROM MINING INDUSTRY
9.3 INCREASING IMPORTANCE OF BIO-BASED LUBRICANTS IN AUTOMOTIVE INDUSTRY
10 MARKET GROWTH ENABLERS
10.1 RISING FOCUS ON ENVIRONMENTAL SUSTANABILITY
10.2 STRINGENT REGULATIONS TO PROMOTE ENVIRONMENTALLY ACCEPTABLE LUBRICANTS
10.2.1 EU ECOLABEL
10.2.2 VESSEL GRANT PERMIT
10.2.3 INTERNATIONAL MARITIME ORGANIZATION (IMO)
10.3 RISE IN FREQUENCY OF NEW PRODUCT LAUNCHES
11 MARKET RESTRAINTS
11.1 HIGH COMPETITION FROM PETROLEUM-BASED LUBRICANTS
11.2 HIGH COST & POOR LUBRICATION PROPERTIES OF BIO-BASED LUBRICANTS
12 MARKET LANDSCAPE
12.1 MARKET OVERVIEW
12.2 MARKET SIZE & FORECAST
12.3 MACROECONOMIC FACTORS AFFECTING BIO-BASED LUBRICANTS MARKET
12.3.1 POWER INDUSTRY
12.3.2 AUTOMOTIVE INDUSTRY
12.3.3 MARINE INDUSTRY
12.3.4 MINING INDUSTRY
12.3.5 CONCLUSION
12.4 FIVE FORCES ANALYSIS
12.4.1 THREAT OF NEW ENTRANTS
12.4.2 BARGAINING POWER OF SUPPLIERS
12.4.3 BARGAINING POWER OF BUYERS
12.4.4 THREAT OF SUBSTITUTES
12.4.5 COMPETITIVE RIVALRY
13 TYPE
13.1 MARKET SNAPSHOT & GROWTH ENGINE
13.2 MARKET OVERVIEW
13.3 PLANT-BASED
13.3.1 MARKET OVERVIEW
13.3.2 MARKET SIZE & FORECAST
13.3.3 MARKET BY GEOGRAPHY
13.4 BIODEGRADABLE SYNTHETIC
13.4.1 MARKET OVERVIEW
13.4.2 MARKET SIZE & FORECAST
13.4.3 MARKET BY GEOGRAPHY
14 APPLICATION
14.1 MARKET SNAPSHOT & GROWTH ENGINE
14.2 MARKET OVERVIEW
14.3 HYDRAULIC OIL
14.3.1 MARKET OVERVIEW
14.3.2 MARKET SIZE & FORECAST
14.3.3 MARKET BY GEOGRAPHY
14.4 CHAIN OIL
14.4.1 MARKET OVERVIEW
14.4.2 MARKET SIZE & FORECAST
14.4.3 MARKET BY GEOGRAPHY
14.5 GEAR OIL
14.5.1 MARKET OVERVIEW
14.5.2 MARKET SIZE & FORECAST
14.5.3 MARKET BY GEOGRAPHY
14.6 METALWORKING FLUID
14.6.1 MARKET OVERVIEW
14.6.2 MARKET SIZE & FORECAST
14.6.3 MARKET BY GEOGRAPHY
14.7 OTHERS
14.7.1 MARKET OVERVIEW
14.7.2 MARKET SIZE & FORECAST
14.7.3 MARKET BY GEOGRAPHY
15 END USER
15.1 MARKET SNAPSHOT & GROWTH ENGINE
15.2 MARKET OVERVIEW
15.3 MARINE
15.3.1 MARKET OVERVIEW
15.3.2 MARKET SIZE & FORECAST
15.3.3 MARKET BY GEOGRAPHY
15.4 MINING
15.4.1 MARKET OVERVIEW
15.4.2 MARKET SIZE & FORECAST
15.4.3 MARKET BY GEOGRAPHY
15.5 AGRICULTURE & FORESTRY
15.5.1 MARKET OVERVIEW
15.5.2 MARKET SIZE & FORECAST
15.5.3 MARKET BY GEOGRAPHY
15.6 AUTOMOTIVE
15.6.1 MARKET OVERVIEW
15.6.2 MARKET SIZE & FORECAST
15.6.3 MARKET BY GEOGRAPHY
15.7 OTHERS
15.7.1 MARKET OVERVIEW
15.7.2 MARKET SIZE & FORECAST
15.7.3 MARKET BY GEOGRAPHY
16 GEOGRAPHY
16.1 MARKET SNAPSHOT & GROWTH ENGINE
16.2 GEOGRAPHIC OVERVIEW
17 NORTH AMERICA
17.1 MARKET OVERVIEW
17.2 MARKET SIZE & FORECAST
17.3 TYPE
17.3.1 MARKET SIZE & FORECAST
17.4 APPLICATION
17.4.1 MARKET SIZE & FORECAST
17.5 END USER
17.5.1 MARKET SIZE & FORECAST
17.6 KEY COUNTRIES
17.6.1 US: MARKET SIZE & FORECAST
17.6.2 CANADA: MARKET SIZE & FORECAST
18 LATIN AMERICA
18.1 MARKET OVERVIEW
18.2 MARKET SIZE & FORECAST
18.3 TYPE
18.3.1 MARKET SIZE & FORECAST
18.4 APPLICATION
18.4.1 MARKET SIZE & FORECAST
18.5 END USER
18.5.1 MARKET SIZE & FORECAST
18.6 KEY COUNTRIES
18.6.1 BRAZIL: MARKET SIZE & FORECAST
18.6.2 MEXICO: MARKET SIZE & FORECAST
18.6.3 REST OF LATIN AMERICA: MARKET SIZE & FORECAST
19 MIDDLE EAST & AFRICA
19.1 MARKET OVERVIEW
19.2 MARKET SIZE & FORECAST
19.3 TYPE
19.3.1 MARKET SIZE & FORECAST
19.4 APPLICATION
19.4.1 MARKET SIZE & FORECAST
19.5 END USER
19.5.1 MARKET SIZE & FORECAST
19.6 KEY COUNTRIES
19.6.1 SAUDI ARABIA: MARKET SIZE & FORECAST
19.6.2 UAE: MARKET SIZE & FORECAST
19.6.3 IRAN: MARKET SIZE & FORECAST
19.6.4 REST OF MIDDLE EAST & AFRICA: MARKET SIZE & FORECAST
20 APAC
20.1 MARKET OVERVIEW
20.2 MARKET SIZE & FORECAST
20.3 TYPE
20.3.1 MARKET SIZE & FORECAST
20.4 APPLICATION
20.4.1 MARKET SIZE & FORECAST
20.5 END USER
20.5.1 MARKET SIZE & FORECAST
20.6 KEY COUNTRIES
20.6.1 CHINA: MARKET SIZE & FORECAST
20.6.2 INDIA: MARKET SIZE & FORECAST
20.6.3 MALAYSIA: MARKET SIZE & FORECAST
20.6.4 INDONESIA: MARKET SIZE & FORECAST
20.6.5 JAPAN: MARKET SIZE & FORECAST
20.6.6 REST OF APAC: MARKET SIZE & FORECAST
21 EUROPE
21.1 MARKET OVERVIEW
21.2 MARKET SIZE & FORECAST
21.3 TYPE
21.3.1 MARKET SIZE & FORECAST
21.4 APPLICATION
21.4.1 MARKET SIZE & FORECAST
21.5 END USER
21.5.1 MARKET SIZE & FORECAST
21.6 KEY COUNTRIES
21.6.1 GERMANY: MARKET SIZE & FORECAST
21.6.2 FRANCE: MARKET SIZE & FORECAST
21.6.3 UK: MARKET SIZE & FORECAST
21.6.4 ITALY: MARKET SIZE & FORECAST
21.6.5 SPAIN: MARKET SIZE & FORECAST
21.6.6 REST OF EUROPE: MARKET SIZE & FORECAST
22 COMPETITIVE LANDSCAPE
22.1 COMPETITION OVERVIEW
23 KEY COMPANY PROFILES
23.1 CASTROL
23.1.1 BUSINESS OVERVIEW
23.1.2 CASTROL IN BIO-BASED LUBRICANTS MARKET
23.1.3 PRODUCT OFFERINGS
23.1.4 KEY STRATEGIES
23.1.5 KEY STRENGTHS
23.1.6 KEY OPPORTUNITIES
23.2 FUCHS
23.2.1 BUSINESS OVERVIEW
23.2.2 FUCHS IN BIO-BASED LUBRICANTS MARKET
23.2.3 PRODUCT OFFERINGS
23.2.4 KEY STRATEGIES
23.2.5 KEY STRENGTHS
23.2.6 KEY OPPORTUNITIES
23.3 RENEWABLE LUBRICANTS
23.3.1 BUSINESS OVERVIEW
23.3.2 PRODUCT OFFERINGS
23.3.3 KEY STRATEGIES
23.3.4 KEY STRENGTHS
23.3.5 KEY OPPORTUNITIES
23.4 TOTALENERGIES
23.4.1 BUSINESS OVERVIEW
23.4.2 TOTALENERGIES IN BIO-BASED LUBRICANTS MARKET
23.4.3 PRODUCT OFFERINGS
23.4.4 KEY STRATEGIES
23.4.5 KEY STRENGTHS
23.4.6 KEY OPPORTUNITIES
24 OTHER PROMINENT VENDORS
24.1 ADDINOL
24.1.1 BUSINESS OVERVIEW
24.1.2 PRODUCT OFFERINGS
24.2 CORTEC CORPORATION
24.2.1 BUSINESS OVERVIEW
24.2.2 PRODUCT OFFERINGS
24.3 CONDAT
24.3.1 BUSINESS OVERVIEW
24.3.2 PRODUCT OFFERINGS
24.4 DUBOIS CHEMICALS
24.4.1 BUSINESS OVERVIEW
24.4.2 PRODUCT OFFERINGS
24.5 EXXON MOBIL CORPORATION
24.5.1 BUSINESS OVERVIEW
24.5.2 PRODUCT OFFERINGS
24.6 ENVIRONMENTAL LUBRICANTS MANUFACTURING
24.6.1 BUSINESS OVERVIEW
24.6.2 PRODUCT OFFERINGS
24.7 HAYNES LUBRICANTS
24.7.1 BUSINESS OVERVIEW
24.7.2 PRODUCT OFFERINGS
24.8 KLUBER LUBRICATION
24.8.1 BUSINESS OVERVIEW
24.8.2 PRODUCT OFFERINGS
24.9 LUBRIPLATE LUBRICANTS COMPANY
24.9.1 BUSINESS OVERVIEW
24.9.2 PRODUCT OFFERINGS
24.10 METALUBE
24.10.1 BUSINESS OVERIEW
24.10.2 PRODUCT OFFERINGS
24.11 PANOLIN AG
24.11.1 BUSINESS OVERVIEW
24.11.2 PRODUCT OFFERINGS
24.12 REPSOL
24.12.1 BUSINESS OVERVIEW
24.12.2 PRODUCT OFFERINGS
24.13 VICKERS OIL
24.13.1 BUSINESS OVERVIEW
24.13.2 PRODUCT OFFERINGS
25 REPORT SUMMARY
25.1 KEY TAKEAWAYS
25.2 STRATEGIC RECOMMENDATIONS
26 QUANTITATIVE SUMMARY
26.1 MARKET BY TYPE
26.1.1 PLANT-BASED
26.1.2 BIODEGRADABLE SYNTHETICS
26.2 MARKET BY APPLICATION
26.2.1 HYDRAULIC OIL
26.2.2 CHAIN OIL
26.2.3 GEAR OIL
26.2.4 METALWORKING FLUID
26.2.5 OTHERS
26.3 MARKET BY END USER
26.3.1 MARINE
26.3.2 MINING
26.3.3 FORESTRY & AGRICULTURE
26.3.4 AUTOMOTIVE
26.3.5 OTHERS
27 GEOGRAPHY
27.1 NORTH AMERICA
27.1.1 TYPE
27.1.2 APPLICATION
27.1.3 END USER
27.2 EUROPE
27.2.1 TYPE
27.2.2 APPLICATION
27.2.3 END USER
27.3 APAC
27.3.1 TYPE
27.3.2 APPLICATION
27.3.3 END USER
27.4 LATIN AMERICA
27.4.1 TYPE
27.4.2 APPLICATION
27.4.3 END USER
27.5 MIDDLE EAST & AFRICA
27.5.1 TYPE
27.5.2 APPLICATION
27.5.3 END USER
28 APPENDIX
28.1 ABBREVIATIONS

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook
Cookie Settings